What Is a HARP Refinance?

Kathleen --- thanks for the comments.  Funny that today there was a headline story on CNN about Bill Clinton's recommendations for fixing the economy.  Key among them was getting serious about mortgages, delinquencies and properties that have substantial negative equity.  I do agree with you --- this version of HARP will likely only incrementally help the broader market.  Yet, on an individual level, we have to rejoice that maybe someone could end up feeling better about his/her situation if the new version opens up an opportunity that is not available now.  It's a step in the right direction and though we're all by now familiar with the government's "too little, too late" measures, we are not in a position to be choosy. 

It is indeed shameful that we cannot break the tail-wagging-the-dog cycle of banks holding the government hostage, the government unwilling and unable to prevent the GSEs from refusing meaningful reform (in the interest of the taxpayer, they claim), and then having the taxpayer --- that is, Joe Homeowner --- footing the bill in every way, shape and form for all of their folly.  In other words, nobody is willing to take a smaller loss, so we all take a bigger one.